PPP, my friend is starting to worry as she’s just found out the woman who looks …

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PPP, my friend is starting to worry as she’s just found out the woman who looks after her two kids while she works isn’t registered. She was sent a letter from tax credits asking for documents from childcare provider and when she asked her for them she’s told her. Now she’s panicking that she’ll get in trouble (her kids were in a nursery but she moved them to a childminder as her youngest was being bitten constantly by one of the staffs children) friend said it was costing the same so didn’t bother ringing tax credits to update the new childcare provider, this was over a year ago and she’s been paying this woman cash (lovely woman, friend interviewed her etc and she looks after other children too so she didn’t think anything of it)
Will she go to jail for this mistake or be fined/have to pay all this childcare money back – even though it’s been given to this woman as wages for childcare?? What should she do?? My friends is quite naive and gullible and tends to find herself in bother a lot due to not having much common sense with paperwork etc (she forgot to sign on for a few months in which her housing benefit was suspended and ended up owing thousands and ended up being evicted for example) she’s crying and thinks she’s going to lose her kids as they’ll send her to jail
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